BofA chief Moynihan's pay cut 7 percent to $13 million: source

Bank of America CEO Brian Moynihan looks on during the White House summit on cybersecurity and consumer protection in Palo Alto, California February 13, 2015. REUTERS/Robert Galbraith

NEW YORK (Reuters) - Bank of America Corp (BAC.N) cut Chairman and Chief Executive Officer Brian Moynihan’s pay by 7 percent in 2014, a source familiar with the matter said on Tuesday, as its full-year profit fell 58 percent on higher legal settlements.

Moynihan’s total 2014 compensation was $13 million, down from $14 million a year earlier, according to the source. He received $11.5 million in stock-based compensation, according to a regulatory filing on Tuesday, down from the $12.5 million he received for 2013.

His base salary remained unchanged at $1.5 million, said the source, who was not authorized to speak publicly about the matter. As in 2013, Moynihan did not receive a cash bonus, according to the source.

The filing did not explain why Moynihan’s stock awards were lowered. The bank will submit a filing later this year containing Moynihan’s total compensation.

Bank of America spent much of 2014 settling cases brought by U.S. regulators and law enforcement authorities. In two agreements over the course of the year, the second-largest U.S. bank said it would pay nearly $26 billion to settle claims that it sold investors faulty mortgage bonds.

Those settlements led the bank to report a loss in two separate quarters in 2014. Overall profits in 2014 fell to $4.8 billion from $11.4 billion in 2013.

JPMorgan has had big settlement bills of its own, but those were mostly paid out in 2013.

The filing showed that Bank of America Chief Operating Officer Thomas Montag was awarded a $7.8 million stock-based compensation package for 2014, down from $8.7 million in 2013. Finance chief Bruce Thompson was awarded a $5.9 million stock-based compensation package for 2014, down from $6.7 million in 2013.